BankDhofar will issue Tender Bonds, Bid Bonds and Performance Bonds that protect the buyer in a project bidding process.
Guarantees are required to shield you from the risk of the successful bidder failing to enter into the contract, and provide cover against delays in the project. The bond generally covers the full amount of the contract in case a successful bidder defaults, as well as against disruptions. If triggered, the beneficiary can demand and obtain payment from the bank.
Bid bonds are a less expensive and do not tie up cash or bank credit lines during the bidding process. It also confirms that the bidding contractor or supplier is qualified to undertake the project.
A tender bond is usually a single page document covering the project to which it relates, the maximum amount of the bond, the procedure for making a call, and the validity of needs in a certain period for someone to take in charge of your international operations. (TARIC, the integrated Tariff of the European Union, is a multilingual database integrating all measures relating to EU customs tariff, commercial, and agricultural legislation.)
